Gold prices fall in Pakistan after sharp rise

KARACHI: Gold prices in Pakistan fell sharply on Thursday, with the price of a tola declining by Rs3,800 after gaining Rs7,900 a day earlier, according to the All-Pakistan Gems and Jewellers’ Sarafa Association.

The price of 24-karat gold fell to Rs453,436 per tola, from Rs457,236 on Wednesday.

The latest decline came after gold prices had already fallen by Rs7,800 over the two sessions preceding Wednesday, before rebounding sharply by Rs7,900 in the previous session.

Thursday’s movement therefore partly reversed Wednesday’s rally, highlighting continued volatility in the local bullion market.

The price of 10 grammes of 24-karat gold declined by Rs3,257 to Rs388,749, while 10 grammes of 22-karat gold fell by Rs2,987 to Rs356,364.

Silver prices also decline

Silver prices also moved lower on Thursday.

The price of a tola of silver declined by Rs73 to Rs6,869, compared with Rs6,942 on Wednesday.

The price of 10 grammes of silver fell by Rs62 to Rs5,889.

Silver had also gained on Wednesday, when the price of a tola increased by Rs140.

Global gold prices fall

The decline in Pakistan’s bullion market followed a sharp fall in international gold prices.

The price of gold in the international market fell by $38 per ounce to $4,309, after rising by $79 to $4,347 on Wednesday.

International silver prices also declined, falling by $0.73 per ounce to $63.91.

The contrasting movements over the past few sessions reflect the volatility in global bullion markets, which has continued to feed through into domestic prices.

Gold prices in Pakistan are primarily influenced by international bullion rates and the rupee-dollar exchange rate, while local demand, supply and market conditions can also affect prices.

A rise in international gold prices generally puts upward pressure on domestic rates, while movements in the rupee can amplify or offset the impact of changes in global prices.

Sharp movements over three sessions

The latest price movement follows a notable reversal in the local market.

Gold had fallen by Rs7,800 per tola over the two sessions before Wednesday, before recording a Rs7,900 increase on Wednesday. Thursday’s Rs3,800 decline has now brought the price back below Wednesday’s level, though it remains significantly above the level recorded before the two-session decline.

The repeated sharp movements have come as gold prices remain at historically elevated levels, with global bullion markets responding to changing expectations around interest rates, economic conditions and geopolitical uncertainty.

For Pakistani buyers and investors, movements in international gold prices are particularly important because domestic bullion rates closely track global prices, subject to currency movements and local market factors.